Which type of business operations typically require surplus lines coverage?

Surplus lines coverage is specifically designed for businesses and industries that face unique risks not typically covered by standard insurance policies. Unique industries requiring specialized insurance often operate under circumstances that present higher or unconventional exposures, such as unusual business practices, specialized equipment, or unique operational hazards.

For instance, businesses in sectors like aviation, marine, or certain high-risk manufacturing may require coverages that are not available in the standard market due to the atypical nature of their operations. These businesses may also see frequent fluctuations in their risk profiles, making traditional options insufficient.

In contrast, average retail stores, non-profit organizations, and government agencies typically operate within risk parameters that align more closely with standard underwriting practices, allowing them to find adequate coverage through conventional insurance markets rather than needing surplus lines. This distinction clarifies why unique industries are the primary candidates for surplus lines coverage.